Nationals $20,000 to $30,000 sweetener to boost the existing Home Start Grant.

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Forums › Politics › Nationals $20,000 to $30,000 sweetener to boost the existing Home Start Grant.

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Ultimate Geek
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#1870548 21-Sep-2017 22:49

Well these are unprecedented times so there really is no knowing what effect higher interest rates would have on house prices.

Regardless, as a potential home buyer I'd rather buy low with high interest rates. When those interest rates inevitably drop (what goes up must come down, EH house prices), you're still only saddled with a relatively smaller principal. When you buy high with low interest rates, when those rates inevitably rise, will you have paid down enough of your relatively larger principal for it to be affordable or will it screw you over?

GV27

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#1870579 22-Sep-2017 06:57

Low interest rates are a good incentive to pay down your mortgage.

High prices just mean you end up borrowing more if you're lucky enough to even get the deposit.

tdgeek

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#1870583 22-Sep-2017 07:07

bmt:

Well these are unprecedented times so there really is no knowing what effect higher interest rates would have on house prices.

Regardless, as a potential home buyer I'd rather buy low with high interest rates. When those interest rates inevitably drop (what goes up must come down, EH house prices), you're still only saddled with a relatively smaller principal. When you buy high with low interest rates, when those rates inevitably rise, will you have paid down enough of your relatively larger principal for it to be affordable or will it screw you over?

Yet on the other thread you bagged baby boomers who did just that.

Wiggum

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#1870649 22-Sep-2017 08:17

GV27:

Low interest rates are a good incentive to pay down your mortgage.

High prices just mean you end up borrowing more if you're lucky enough to even get the deposit.

Maybe you should go and do some research and see what interest rates were like when those babyboomers bought their property.

tdgeek

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#1870659 22-Sep-2017 08:26

GV27:

Low interest rates are a good incentive to pay down your mortgage.

High prices just mean you end up borrowing more if you're lucky enough to even get the deposit.

No, no no. High interest rates are an incentive to pay it down, low rates mean best to leave it and pay down anything else such as car payments, HP, Creditcard that have higher rates

GV27

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#1870660 22-Sep-2017 08:28

Wiggum:

GV27:

Low interest rates are a good incentive to pay down your mortgage.

High prices just mean you end up borrowing more if you're lucky enough to even get the deposit.

Maybe you should go and do some research and see what interest rates were like when those babyboomers bought their property.

Maybe you should do some research on which is more: 21% on a $50,000 loan or 6% on a $550,000 loan.

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tdgeek

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#1870661 22-Sep-2017 08:29

Wiggum:

GV27:

Low interest rates are a good incentive to pay down your mortgage.

High prices just mean you end up borrowing more if you're lucky enough to even get the deposit.

Maybe you should go and do some research and see what interest rates were like when those babyboomers bought their property.

https://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletins/1994/1994mar57-1brash22jul.pdf

Graph 3, peaked just over 20%

GV27

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#1870662 22-Sep-2017 08:32

tdgeek:

GV27:

Low interest rates are a good incentive to pay down your mortgage.

High prices just mean you end up borrowing more if you're lucky enough to even get the deposit.

No, no no. High interest rates are an incentive to pay it down, low rates mean best to leave it and pay down anything else such as car payments, HP, Creditcard that have higher rates

Sorry, I had my points mixed up. High interest rates = incentive to pay down. High prices = a huge barrier to even getting a deposit together.

tdgeek

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#1870678 22-Sep-2017 08:43

GV27:

tdgeek:

GV27:

Low interest rates are a good incentive to pay down your mortgage.

High prices just mean you end up borrowing more if you're lucky enough to even get the deposit.

No, no no. High interest rates are an incentive to pay it down, low rates mean best to leave it and pay down anything else such as car payments, HP, Creditcard that have higher rates

Sorry, I had my points mixed up. High interest rates = incentive to pay down. High prices = a huge barrier to even getting a deposit together.

Then, you saved a deposit. Typically a one income family. Now, you save, typically a two income family, the smart ones lived on one and saved the other, so you can save a lot. Kiwisaver didnt exist, I have older friends who cant save a cent, yet they have tens of thousands in Kiwisaver, and get a free grant. Boomers had kids early, so little option to have two incomes. Today two incomes are needed. Different times, same issues. Both can buy houses and pay most to a mortgage. prior to this housing crisis, it was a lot more affordable, but the market economy we have to live in kills that for most as has been seen

tdgeek

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#1870685 22-Sep-2017 08:49

What would a baby boomer do now? Work hard, save hard, scrimp on this, maximise savings, maximise Kiwisaver, get a grant, buy a house. What would someone else do in baby boomer times? Same thing. (Except for Kiwisaver and a grant) What would a Millenial do now? Complain that they dont want two jobs, have Sky, complain they cant afford a 5 bedroom Executive home. The smart millenials will work hard and save hard, as many no doubt do, but you dont hear about them

GV27

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#1870700 22-Sep-2017 08:56

tdgeek:

What would a baby boomer do now? Work hard, save hard, scrimp on this, maximise savings, maximise Kiwisaver, get a grant, buy a house. What would someone else do in baby boomer times? Same thing. (Except for Kiwisaver and a grant) What would a Millenial do now? Complain that they dont want two jobs, have Sky, complain they cant afford a 5 bedroom Executive home. The smart millenials will work hard and save hard, as many no doubt do, but you dont hear about them

Ah the old "millennials and their avocados/Sky argument".

So when 60% of houses in South Auckland were being bought by investors, that was 'millennial whinging'.

When the prices of two bedroom granny flats doubled in three years, that was 'millennial whinging'.

When house prices are at 10x the median income as opposed to 3x like they were for boomers, that was 'millennial whinging'.

You don't hear about many millennials who are working hard and saving because they're putting in 50 hours a week to pay increasing rents AND save for a massive deposit. A lot of them have quietly given up on ever having a family. But's it's OK. YOU have a house. So everything is fine.

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Wiggum

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#1870708 22-Sep-2017 09:02

GV27:

You don't hear about many millennials who are working hard and saving because they're putting in 50 hours a week to pay increasing rents AND save for a massive deposit. A lot of them have quietly given up on ever having a family. But's it's OK. YOU have a house. So everything is fine.

As said previously, please explain why some immigrants that arrived in NZ as little as 10-12 years ago with nothing but the bags on their backs are now in a position where they own their own home. Sometimes even more than one.

Its got more do to with millennials attitude than anything else. And dare I even go as far as to say that Kiwi millennials seem to be suffering from entitlements syndrome more than millennials from anywhere else.

tdgeek

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#1870714 22-Sep-2017 09:12

GV27:

tdgeek:

What would a baby boomer do now? Work hard, save hard, scrimp on this, maximise savings, maximise Kiwisaver, get a grant, buy a house. What would someone else do in baby boomer times? Same thing. (Except for Kiwisaver and a grant) What would a Millenial do now? Complain that they dont want two jobs, have Sky, complain they cant afford a 5 bedroom Executive home. The smart millenials will work hard and save hard, as many no doubt do, but you dont hear about them

Ah the old "millennials and their avocados/Sky argument".

So when 60% of houses in South Auckland were being bought by investors, that was 'millennial whinging'.

When the prices of two bedroom granny flats doubled in three years, that was 'millennial whinging'.

When house prices are at 10x the median income as opposed to 3x like they were for boomers, that was 'millennial whinging'.

You don't hear about many millennials who are working hard and saving because they're putting in 50 hours a week to pay increasing rents AND save for a massive deposit. A lot of them have quietly given up on ever having a family. But's it's OK. YOU have a house. So everything is fine.

First you need to remove the artificial housing crisis out of the equation. When you get wealthy foreignors bringing money in from another economy and when they pay 50% more for a house thats still a steal, it all goes out the window. Thats what has happened, it could have happened any time. So go back a few short years then do the sums, they work. Go to Palmerston North, median price there is high, 385k from memory, very affordable. But you cannot cherry pick a small window of time to argue your point, you need to blame someone else for that.

GV27

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#1870715 22-Sep-2017 09:12

Wiggum:

GV27:

You don't hear about many millennials who are working hard and saving because they're putting in 50 hours a week to pay increasing rents AND save for a massive deposit. A lot of them have quietly given up on ever having a family. But's it's OK. YOU have a house. So everything is fine.

As said previously, please explain why some immigrants that arrived in NZ as little as 10-12 years ago with nothing but the bags on their backs are now in a position where they own their own home. Sometimes even more than one.

Its got more do to with millennials attitude than anything else. And dare I even go as far as to say that Kiwi millennials seem to be suffering from entitlements syndrome more than millennials from anywhere else.

So you want me to explain how people coming here were able to buy houses 10 - 12 years ago? I'll start with "houses were a lot cheaper then" and now own several because boomers keep voting for councils and Govts which entrench their ability to invest in property at the expense of young people?

And it's rich to accuse Kiwi millennials of being entitled, given we've got a generation that gets money for turning a certain age profiteering of us. But that's cool. I'm sure people totally put off having kids and families forever because we have too much smashed avo on toast, and not because the older generations keep tilting the playing field in their favour.

tdgeek

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#1870720 22-Sep-2017 09:23

GV27:

Wiggum:

GV27:

You don't hear about many millennials who are working hard and saving because they're putting in 50 hours a week to pay increasing rents AND save for a massive deposit. A lot of them have quietly given up on ever having a family. But's it's OK. YOU have a house. So everything is fine.

As said previously, please explain why some immigrants that arrived in NZ as little as 10-12 years ago with nothing but the bags on their backs are now in a position where they own their own home. Sometimes even more than one.

Its got more do to with millennials attitude than anything else. And dare I even go as far as to say that Kiwi millennials seem to be suffering from entitlements syndrome more than millennials from anywhere else.

So you want me to explain how people coming here were able to buy houses 10 - 12 years ago? I'll start with "houses were a lot cheaper then" and now own several because boomers keep voting for councils and Govts which entrench their ability to invest in property at the expense of young people?

And it's rich to accuse Kiwi millennials of being entitled, given we've got a generation that gets money for turning a certain age profiteering of us. But that's cool. I'm sure people totally put off having kids and families forever because we have too much smashed avo on toast, and not because the older generations keep tilting the playing field in their favour.

Boomers haven't increased the prices of houses. You need to ask why foreigners are free to pay more and do, unlike other countries where thats banned for non residents. Generally, prices, interest rates, salaries will all meld to a reasonably similar situation, as well as other variables. But when you allow free right by overseas non residents to make money, that artificial injection is what you and any other want to be home owner, aged 18 to 50 should be concerned with

Despite what you think about baby boomers, the vast majority dont buy the Property Weekly

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